Cloud engineering emphasizes the use of software engineering practices, such as refactoring, to enhance code maintainability, performance, scalability, and security without altering external behavior. Refactoring, commonly applied in DevOps for modern applications, can also be utilized in cloud infrastructure through infrastructure as code, offering advantages like improved readability and maintainability of code. Pulumi stands out by maintaining resource identities based on object IDs, allowing for seamless refactoring without recreating resources and utilizing aliases to connect old and new object states. Techniques like Test-Driven Development (TDD), Pull-Up/Push-Down, composing, simplifying method calls, moving features, and preparatory refactoring play pivotal roles in refining codebases, reducing duplication, and facilitating future changes efficiently. Pulumi provides examples in various programming languages, showcasing the potential for refactoring to ensure clean and efficient cloud infrastructure code.